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To think married couples should be taxed together

118 replies

OneAmberFinch · 10/04/2025 14:40

Philosophically, I think it's a couple's business how they divide their responsibilities between earning and working in the home, and the tax system should treat them as a single unit.

I would extend this to tax on investment products as well: currently, virtually every serious product (available to the masses i.e. not custom family trusts etc) is in a single person's name. For example, there are barely any joint savings accounts that pay a decent interest rate, pensions/ISAa are in individual names etc.

If there were a simple way to tax jointly, I think more of these products would exist.

Why do I care about this? Because I think it would solve quite a lot of the issues that come up on MN w.r.t. money in relationships - "you can't take a 3-year maternity leave, or if you do you need to beg your DH to donate to your pension".

I don't think it's enough to just be able to inherit someone else's pension/savings - beneficiaries can be changed. I think throughout life, many couples would like to truly manage their finances jointly, but the tax system and types of financial accounts available don't make it possible.

OP posts:
MrsBennetsPoorNerves · 11/04/2025 21:59

OneAmberFinch · 11/04/2025 20:09

So currently we have a system where benefits are based on joint income and there is a clear and obvious incentive to "live apart" and definitely not do anything so legal as get married.

But there is no corresponding financial incentive TO get married.

I think some people see my suggestion as a sort of weird distortion of the true principle of independent taxation / feminist values, but don't see that it's just a parallel to the existing system with benefits.

Considering household income for benefits purposes is just common sense. It would be ridiculous for the taxpayer to fund benefits for someone who was living with a high earner (unless they were disability benefits that aren't means tested).

It's very different from introducing taxation based on household income, which would trap many women at home and make it very difficult for some to retain their independence. It is a feminist issue as far as I'm concerned.

OneAmberFinch · 11/04/2025 20:09

So currently we have a system where benefits are based on joint income and there is a clear and obvious incentive to "live apart" and definitely not do anything so legal as get married.

But there is no corresponding financial incentive TO get married.

I think some people see my suggestion as a sort of weird distortion of the true principle of independent taxation / feminist values, but don't see that it's just a parallel to the existing system with benefits.

OP posts:
Burntt · 11/04/2025 20:06

I would be against this. It would hurt women more than help them.

for example my ex was a high earner and I was a low earner. So financially we would have been better off him having my tax free allowance as he was paying higher rate tax on some of his income while I was on normal rate tax. I could have paid tax on my whole income and still paid normal rate -so would have made sense he get my tax fee allowance and jointly we would have been better off.

except a big reason we split was because I didn’t have access to ‘his’ money while his high earning meant I lost child benefits and couldn’t get help with childcare. He wasn’t exactly abusive and would not have forced me to give him my tax free allowance had that been possible but I suspect such a scheme would be utilised by financially abusive men in droves

tigger1001 · 11/04/2025 19:52

OneAmberFinch · 11/04/2025 19:15

I should probably say I think it should be only available to married couples or some variant of "registered" couples, not all cohabitees, and I'm okay with that.

I think the PAYE point from @SoonTheDaffodilsWillBeOver is a good one, but it's not technically unsolvable. Since it would only be registered couples HMRC could keep a record of estimated earnings of the couple from the previous month, and use the same adjustment system they use today when people change their individual salaries for various reasons.

You have a lot of faith in Hmrc. I deal with them on a regular basis - there are many, many ways this would be screwed up.

they screw up simple things all the time

MrsBennetsPoorNerves · 11/04/2025 19:34

I support the principle of independent taxation and I don't agree that it should be an option to transfer the allowance. Introducing this would potentially put pressure on some women to give up their careers so that their husbands could benefit from their tax allowances. There is no guarantee that the women would have access to all of the household income in that scenario. Very appealing for controlling men who are financially abusive.

OneAmberFinch · 11/04/2025 19:15

I should probably say I think it should be only available to married couples or some variant of "registered" couples, not all cohabitees, and I'm okay with that.

I think the PAYE point from @SoonTheDaffodilsWillBeOver is a good one, but it's not technically unsolvable. Since it would only be registered couples HMRC could keep a record of estimated earnings of the couple from the previous month, and use the same adjustment system they use today when people change their individual salaries for various reasons.

OP posts:
LifeExperience · 11/04/2025 18:51

SoonTheDaffodilsWillBeOver · 10/04/2025 16:52

This happens in some countries (like the US). But there most people have to fill out a tax return. In the UK most people are taxed through PAYE and don’t fill out a tax return. It’s an administrative nightmare to do joint taxes through PAYE because how is your employer supposed to know what your spouse is earning this month?

Married couples in the US can choose to file separately or jointly.

DeskJotter · 11/04/2025 18:40

Rollercoaster1920 · 11/04/2025 16:57

After years of frustration at being a couple with a highish earner and a SAHP, I'd agree. And that was before the current 100k cliff edge for childcare benefit.

I'd stop child benefit, 'free' nursery hours, and allow personal allowance transfer between spouses. I'd up UC to replace CB for low earners.

That would encourage parents to spend time with their children. Quite old-school, but I prefer that to the state biscuit-eating machine cycling tax money into childcare factories.

It'll never happen because it'll reduce the tax take.

😱 But some of us have careers. WTAF.

DeskJotter · 11/04/2025 18:39

opinionspleas · 11/04/2025 16:32

The thing is it does actually save a lot of money as well. If this SAHP was working they would be sending their child to full time childcare which cost the taxpayer money. Assuming this person earnt £30k their total income tax bill would be c.£3.5k for the year. It would cost a lot more for their kids to be in childcare. So overall there is a cost saving to the government for them staying at home.

It's all about the perception of fairness isn't it. If you're in a couple it seems unfair that a total salary of £120k for a couple where one works incurs c.£40k of tax while if both in a couple worked there would be a total tax bill of £25k. While in the second scenario they would be having to use childcare which costs the government money etc. On the flip side of the coin if a single person earnt £120k their costs wouldn't be necessarily substantially less than the married couple so why should they be forced to pay more tax than a married person who has a stay at home spouse.

Not true, because she would be earning money and paying tax to cover this.

OneAmberFinch · 11/04/2025 18:30

Flossflower · 11/04/2025 17:53

As an older woman who was a SAHP for some years, I never thought I was entitled to transfer my tax free allowance to my husband. I was not contributing directly to the economy, which this country needs. I don’t buy this rubbish that SAHP are contributing to the economy through looking after their children. My grandchildren have a mixture of care : Nursery, School, holiday and after school clubs, Us and their other Grandparents. They are certainly no worse off for not being brought up by a SAHP. The economy is benefiting from both their parents working.

If SAHP is doing work that otherwise would be paid for by fees + funding, it's a clear financial contribution ignoring any softer benefits. (Likewise for grandparental care, fwiw. I'm a parent of a preschool aged child and acutely aware of how much I'd save if I had some nearby!)

Regarding entitlement, the tax system is something entirely made up and constructed by us. You weren't entitled to transfer your allowance under the system at the time, you would be entitled to do it under mine.

OP posts:
Flossflower · 11/04/2025 17:53

OneAmberFinch · 11/04/2025 17:35

Should we not reflect on that? If many women would choose to stay at home with their children except for the fact that the tax system discourages it, isn't that an issue with the tax system?

I disagree that SAHPs don't contribute, by the way - although I'm not one myself.

As an older woman who was a SAHP for some years, I never thought I was entitled to transfer my tax free allowance to my husband. I was not contributing directly to the economy, which this country needs. I don’t buy this rubbish that SAHP are contributing to the economy through looking after their children. My grandchildren have a mixture of care : Nursery, School, holiday and after school clubs, Us and their other Grandparents. They are certainly no worse off for not being brought up by a SAHP. The economy is benefiting from both their parents working.

Nc500again · 11/04/2025 17:37

I think household income calculations of tax not limited to marriage would be more likely than anything based on marriage - gives want to move to household income to tax more effectively (more) but it would be based on who you live with, not who you’re married to - the reason the marriage tax allowance is so small is tories feared to do more given so many cohabiting but not married these days.

ExpressCheckout · 11/04/2025 17:37

DeskJotter · 11/04/2025 17:10

I'm sorry for your loss.

I'm not sure how your costs are the same for one person compared to two. If that were the case, the point being made on here by some others (i.e. "my husband has to support me") would be redundant - because it is equally cheap to support a second, non-earning partner as it is to be single?

I understand what @DeskJotter is saying. Very few living costs suddenly halve once you are on your own. In fact, some of the costliest things remain the same, especially heating and energy, and many costs and prices increase proportionally compared to a couple.

There's plenty of evidence and data online to demonstrate the economic and financial impact of being on your own. Then there's the 'single person' tax on concessionary spending, too - holidays, most travel, not to mention the promotions/offers that are only for two.

Politically, there's not much that can be done, sadly. It would take a brave politician to cut through 'couple entitlement' and 'hard working family' rhetoric that discriminates against singles - plus, with Rachel Reeves sneaking her hand into people's purses, we are a soft target.

OneAmberFinch · 11/04/2025 17:35

Flossflower · 11/04/2025 17:26

Obviously you are treated as a couple for benefits. Benefits are about the minimum you need. Tax is about how much you earn and can vary.
It definitely won’t be coming here. The government would loose far too much money from people who would decide to be a SAHP and get their OH to have their tax allowance, while giving nothing to the economy.

Should we not reflect on that? If many women would choose to stay at home with their children except for the fact that the tax system discourages it, isn't that an issue with the tax system?

I disagree that SAHPs don't contribute, by the way - although I'm not one myself.

OP posts:
Ophy83 · 11/04/2025 17:35

littleburn · 11/04/2025 12:40

I was just thinking this. I’m divorced and earn £66k, with the portion of my household income above £50k falling in the 40% tax bracket. Whereas a married couple with the same household income but earning £33k each would only be taxed at 20%.

Far fewer people would get married if you did this, as the household would end up paying more tax so economically it doesn't make immediate sense, particularly considering that people tend to marry just before an expensive time of life with childcare costs and the need to house a family. Which would negatively impact women. First, if the relationship breaks down, as overall women benefit more on a divorce than on a break up of an unmarried relationship. Secondly, if the partner dies as spouses have greater protection on death.

MellowPinkDeer · 11/04/2025 17:29

kiwiane · 11/04/2025 17:01

In that case I wouldn’t have got married - we are not one person and our jobs pay differently and we are entitled to our own savings and money management.

Absolutely same. We are both high earners and own a home but I would not have got married if I couldn’t have kept my financial independence. This would start a massive hole where suddenly my income would come into the calculation of his child maintenance payments etc etc. it would never stop. I already don’t get child benefit, I don’t want to have to merge my finances so some SAHM can feel more financially secure!! If you decide to stay home then it’s your responsibility to sort it all out. I would hate for single people to be worse off, a system entirely unfair!

Flossflower · 11/04/2025 17:26

zoemum2006 · 11/04/2025 17:14

💯 should be an option.

DH and I run a business together and we effectively share the tax burden.

you are treated as a unit for benefits so why not tax?

being able to share lower tax brackets is so helpful for a family.

Obviously you are treated as a couple for benefits. Benefits are about the minimum you need. Tax is about how much you earn and can vary.
It definitely won’t be coming here. The government would loose far too much money from people who would decide to be a SAHP and get their OH to have their tax allowance, while giving nothing to the economy.

DeskJotter · 11/04/2025 17:21

Flutterbyby · 11/04/2025 15:49

Doesn't work like that in Ireland. We have more benefits, fairer benefits system, more protections for women, better services on the whole, and joint taxation which saves us money, not costs more.

And the tax rate in Ireland is famously high.

Cynic17 · 11/04/2025 17:20

Oh for goodness sake (polite version!)...... Women have fought for years to be treated as individuals in our own right, and now the OP wants to go back to the stone age. My finances are nothing to do with my husband's, and vice versa. We have been happily married for 35 years. These two things are not coincidental!

DeskJotter · 11/04/2025 17:17

Flutterbyby · 11/04/2025 15:49

Doesn't work like that in Ireland. We have more benefits, fairer benefits system, more protections for women, better services on the whole, and joint taxation which saves us money, not costs more.

I was with you until the "better services". I'm Irish living in the UK, and the services in the UK far outstrip those in Ireland. Particularly the NHS, but also public amenities, refuse collection, etc.

zoemum2006 · 11/04/2025 17:14

💯 should be an option.

DH and I run a business together and we effectively share the tax burden.

you are treated as a unit for benefits so why not tax?

being able to share lower tax brackets is so helpful for a family.

DeskJotter · 11/04/2025 17:14

Flutterbyby · 11/04/2025 14:33

It's really simple and easy to change around. I earn more than my husband so I use part of his tax credits to offset my taxes, and take some of his rate band too. This maximises our allowances

But why should a married couple pay less tax?

DeskJotter · 11/04/2025 17:11

Scottishskifun · 11/04/2025 13:49

It's not that unusual for women to be on the same or higher salaries then their partners.

From the women I am friends with this is the case for about 2/3rds of being on the same or more.

Also treating as a single unit unless they are going to significantly change the thresholds would leave a lot of families worse off. So you would end up with more women quitting and making less tax which makes zero sense!

I agree, it is really not unusual for a woman to be the higher earner.

DeskJotter · 11/04/2025 17:10

Newfun · 11/04/2025 13:47

I think there's a lot wrong with the tax system for shared households/single.

DP died. We each earned approx £50k so were both basic rate taxpayers.

Since he died, my costs are basically the same. I get a small pension from his employer which puts me in the higher tax bracket. The household income is much less, but I pay more tax.

Everything else costs more when you're single too, from food shopping, to days out, train travel and holidays.

And the child benefit thing is absolutely bonkers.

I'm sorry for your loss.

I'm not sure how your costs are the same for one person compared to two. If that were the case, the point being made on here by some others (i.e. "my husband has to support me") would be redundant - because it is equally cheap to support a second, non-earning partner as it is to be single?

DeskJotter · 11/04/2025 17:07

Bellyblueboy · 11/04/2025 12:37

I am a high earner in single female. I think it would be unfair if my male colleague (and let’s be honest this will mainly be males) suddenly had a much bigger take home salary because his wife chooses not to work.

100% agree

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